Power Ministry directs PFC & REC to take necessary action for ICB Plants Under Stress

NEW DELHI- Union Power Ministry has directed Power Finance Corporation (PFC) and Rural Electrification Corporation (REC Ltd) to take necessary action to arrange short term loans for a period of six months with adequate safeguards, for ICB plants which are under stress or in NCLT, at the earliest. These plants need working capital to buy coal and start generating power in order to restart their operations.

Union Minister for Power and New and Renewable Energy held a meeting on 9th May 2022 on issues related to working capital to Imported coal based plants which are stressed or are in NCLT. In view of increased demand and unprecedented pressure on domestic coal supplies, Ministry of Power, on 05.05.2022 issued directions to all imported Coal Based Plants (ICB) under Section 11 of the Electricity Act, 2003 to operate and generate power to their full capacity, even for projects which are stressed or under NCLT. These directions will ensure that additional electricity is produced through imported coal and will be a net addition.